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Prices of Foreclosed Homes HUD and Other Residences Fell in GA

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By : John Cutts    99 or more times read
The prices of residential properties, including foreclosed homes HUD, dipped lower in several areas of Georgia during the last month of 2010. This has led to an increase in the number of underwater homeowners, or those who currently have mortgages that cost more than the value of their properties. According to housing market analysts, the trend is happening in almost all regions of the U.S.

Foreclosed homes in Douglasville, GA, and in the rest of the state continue to increase as 2011 starts. The presence of these foreclosures is causing housing prices to decline even lower, analysts have reported. They stated that dropping housing unit prices is also the most significant factor causing homeowners to go underwater. Latest data showed that around 27% of all homeowners in the country are currently underwater.

The metro area has some of the highest number of foreclosed homes in Georgia, so it is not surprising that it also has some of the biggest numbers of underwater borrowers, analysts have asserted. The metro area recorded the fastest rise in underwater loans at the end of last year, with the metro's negative equity figure surging to 54% in the fourth quarter of 2010.

The increase was considerable, given that Atlanta's negative equity percentage in the third quarter of 2010 was 37.6%. According to local housing industry observers, the continuous rise in the number of underwater loans in the city was mainly caused by the huge number of foreclosures in the area, including bank and foreclosed homes HUD.

Realtors have reported that the median price of houses sold in Atlanta during December 2010, including foreclosed property sales, has gone down to the price level of November 1999. Median selling price in the metro region during the month was around $128,000, representing a drop of 29% compared with the peak price period of 2006. Nationwide, more than 15 million homeowners are said to be holding negative equity on their properties as of the end of 2010.

Analysts have attributed the rising percentage of homeowners with negative equity to the cheap foreclosures, including foreclosed homes HUD, that continue to flood the market. Unemployment has also been cited as a major reason.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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